Dear Friend,
I hope this finds you well.
I was very excited ahead of the first Budget under Andy Burnham and the new Chancellor John Healey. With the pressures on energy prices from the US war in Iran driving inflation across the board, we needed a budget that would give breathing space for families and businesses, and hope for the future. I am glad to say that is what we got – and more.
The good news is that we are cutting borrowing faster than any other G20 country.
I have picked out the announcements that will have the biggest impact for our constituency and region, followed by the usual constituency round-up. The full 2026 Budget is here.
Energy Bills
These are a big worry for so many people, and the steps announced will make a real difference to our constituency.
The Energy Bills Breathing Space scheme means around 48,720 households in Hull West and Haltemprice will get a £100 payment directly into their bank account this winter. Nationally, that’s 20 million households in council tax bands A -D.
Gas standing charges, which average around £108 a year per household, will be abolished. That means around 60% of households will save an average of £45 a year. As the costs will be moved into unit rates there will be targeted mitigations for some vulnerable households.
The 0% VAT rate on electricity will now be extended until 30 June 2027, reducing the April 2027 Ofgem price cap by around £50, and we have committed to reforming electricity standing charges.
Housing
I know how difficult it is to find council and affordable rented accommodation in the constituency, and how hard it is for first-time buyers without the ‘bank of Mum and Dad.’
That’s why the Chancellor provided £1.5bn extra for social and affordable housing, with the aim of building an extra 10,000 homes. This is supported by planning and regulatory changes which will reduce the cost and delay involved in building and extending the discounted local authority borrowing rate for new council housebuilding to April 2028.
There will be support for around 70,000 first-time buyers through a new ‘Your First Home’. The £4.7bn fund will be targeted at those who most need help, with a 2.5% deposit requirement and £110k household income cap. Price caps will be set based on local authority median prices.
There is also a new First Time Buyer ISA, with a 25% government bonus.
Families
We have already given new fathers and partners the right to paternity leave from the first day in a new job. From April 2029, previously excluded self-employed fathers, partners and adopters in Great Britain will be able to access a Parental Allowance pay, benefitting an extra 150,000 people a year.
The National Living Wage and the National Minimum Wage have been increased by 3.9%, making a real difference to thousands of local households.
Local business
I meet so many small business owners and staff through my business of the week and I hear directly from them about the rising costs they face.
So, it was great to hear the Chancellor respond to this head-on by taking more businesses out of business rates completely by increasing Small Business Rates Relief thresholds for eligible retail, hospitality and leisure properties. This means around 54% of all RHL properties in Yorkshire and the Humber will pay no business rates at all.
For those still eligible, rates have been frozen for 2027/28 and 2028/29. This will benefit around 1,610 properties in the East Riding and around 820 properties in Hull.
Eligible industrial businesses will get around 25% off electricity bills, covering more than 10,000 businesses from April 2027.
There is support for people to start up new businesses too. The tax-free trading allowance for people starting small businesses or side ventures will increase from £1,000 to £3,000. For start-ups with an eye on growth, the new Founders’ Relief reduces Capital Gains Tax to 10% on up to £10 million of lifetime gains for eligible founders and early investors.
More Power for Hull and East Yorkshire
This Budget backs devolution, giving Hull and East Yorkshire Combined Authority more say over how growth and investment are delivered locally. This includes
- 20% share of local business rates from April 2027, allowing the area to benefit directly from economic growth.
- A share of locally generated income tax from 2028, with funding linked more closely to the area’s economic success.
- Power to introduce a local visitor levy (tourist tax), with local leaders able to decide whether to use it and how any revenue is invested in the area.
- Access to a share of the £285 million Good Growth Fund to support local priorities.
- New borrowing powers from 2028, including access to a devolved borrowing facility to support major investment projects.
This means more money raised locally can stay local, and along with the new funding and greater powers for regional leaders, decisions about jobs, skills, transport and economic development can increasingly be made closer to the communities they affect.
Action on tax fraud
Four years ago in Select Committee, I asked the then Chancellor, Jeremey Hunt, why his government wasn’t investing more in tax fraud despite the fact that the return was 818%!
This government has a different approach to tax fraud, and I was delighted to hear John Healey announce exactly the kind of increase we’d been asking for. Measures to tackle online VAT avoidance will also be strengthened.
Everyone should pay the taxes they owe, and the returns on collecting that money means more for our public services.
With money being raised through these changes, taxes on investment income and wealth, as well as banks and the gambling industry, this budget is aimed squarely at supporting households who need it most – as this graphic shows.
There were also important announcements on defence and national security with full funding for £15 billion for Defence Investment Plan announced and on jobs and growth, £20 billion of additional capital for the National Wealth Fund and British Business Bank, which will support around 130,000 new jobs.
We are able to take on these challenges because everything we do is built on fiscal discipline, the bedrock for our economy, and we’ll continue to build on it through our 10-Year Plan and the next Spending Review.
Fundamental change to the English Curriculum
Getting the flu jab was also an important precaution when I was a teacher, as the children brought in colds, coughs and worse to swap with each other as Autumn arrived. One of my passions from those days which has stayed with me is oracy.
I always felt that the ability to express yourself verbally, to communicate your thoughts and feelings clearly out loud, was such an important skill and one that had been largely ignored in state education. I tried to weave it into my lessons where I could and organised a debating club as well as a radio club which I took down to Parliament to see speeches and debate live in the House of Commons.
As a back-bench MP I set up the Oracy All-Party Parliamentary Group and worked with Voice21 campaigning for oracy to be made part of the curriculum.
So, I was blown away by Lucy Powell’s announcement that oracy would not only be a part of a revised curriculum but would be given equal status to reading and writing.
This is part of the clear direction of travel under Andy Burnham. Working-class people do not lack good ideas or ability. Instead, many have not been given the same opportunities to develop the confidence and communication skills needed to express their ideas, speak up, and feel that they belong in the room. The teaching of oracy will give them those skills and the self-belief to stand up and make their voices heard.
This is a photo taken of that first Oracy APPG meeting eight years ago. I’m so proud we have a Labour government that understands that our state schools should be levelling the playing field for all our children.
Businesses of the month
Kitchens by Design is an independent, family-run kitchen, bathroom and bedroom company on Boothferry Road and is celebrating their 22nd birthday this year.
They provide the whole thing, from home survey, design consultation through to installation. They make sure timescales and costs are clear and the reassurance that everything is taken care of from start to finish.
Boutique 187 is a ladies clothing and accessories store on Wold Road who create a really welcoming atmosphere and make every customer feel special. There’s always a cup of tea ready, a listening ear and a great range of fashion.
They regularly update their stock to reflect the changing seasons.
And finally,
As always, I’m here to support you.
You can email me at emma.hardy.mp@parliament.uk or call my office at 01482 219211. Leave a message if I’m unavailable, and I’ll get back to you as soon as I can.
And, if there’s anyone you think would be interested in reading this newsletter, please feel free to share it. If you’re reading this for the first time you can subscribe at contact@emmahardy.org.uk
Best wishes,
Emma Hardy MP
Hull West and Haltemprice
P.S. Whether it’s Burnham, buses or bins, your local Labour team wants to hear your thoughts. If you’re a Hull resident, please complete this survey and let them know what you’d like to see for Hull.